NeighborCare shareholders have been instructed by the company's board of directors to reject a revised takeover bid of $1.7 billion, including assumption of debt, from Covington, Ky.-based Omnicare. NeighborCare, a Baltimore-based long-term-care drug company, said the company's value has increased because of operational efficiencies since rival Omnicare announced a $1.5 billion offer in May 2004. Omnicare said it was disappointed with NeighborCare's decision and that the offer, which expires June 30, presents "compelling value" to both companies' shareholders. Omnicare reported net income of $58 million, or 54 cents per share, on sales of $1.1 billion in the first three months of 2005. NeighborCare had net income of $9.7 million, or 22 cents per share, on revenue of $404.7 during the same period.
NeighborCare rejects second Omnicare bid
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